The clarion., 1887-11-02

Seminary Fund, observe, which the
state had itself put into the bank)
would get about $500, 900. But this
would leave the State loser to the extent
OF about 81 100000 principal, besides
interest, on the bonds. Therefore. the
liquidating act provided as follows: fra,
| that the bona fde circulation of the
bank, and also all deposits of either gold
or silver, or notes of the bank, were to
| be paid first; secondly, the ttc0 millions OF
State bonds; thirdly, the remaining cred
itors of the bank; .foalrthly, the residue
TO be distributed amongst stockholders.
| Thus, after the holders of currency and
| depositors (who of course were mainly
citizens of the State) were paid, the
bonds of the State, although they were
not liabilities of the bank, were brought
in, to absorb the balance, in exclusion
of all other creditors and stockholders,
amongst which latter class was the Sem
mary Fund To what extent money
was actually paid on these bonds by
this process, | have not discovered; but
that is not the point When the law
was passed, it was hoped that at least
81 10000 would be so paid; and the
provision shows ho,g much care the Legis
| latare 2gere taking Of the Seminary Fund in
Planters Bank business: which was, just
none whatever.
THE STATE LIABLE FOR THE UNCoL-
LEcrED MONEY.
Let us recall the facts. The act which
required the lands to be sold, expressly
| required that the purchase-notes should
be taken with APPROVED SECURITY and
the renewal notes. if any, were also to be
an APPROVED SECURITY; the approval
to be made in the first place by the Aud
itor, and, in the second place, by the conf
missioners of the sinking fund. More
over, no titles were to be made until all
the purchase money of each piece was
paid. Thus, there was the beginning
point, of not only retention of title for
security, but also other security official
ly approved by the State. There is no
reasonable doubt but that these notes
were arranged and approved in copform
ity to the statute. The Auditor was re-
quired to collect the notes, aud invest
in Planters Bank Stock. The notes
were payable 1st days of November,
1884, 1885 and 1886. The statute au-
thorized one years extension, but no
more; so that the last due notes, even
with the extension, were payable 1st
November, 1887.
The collection of the notes was neg
lected from the very beginning. The
work, although required to be done by
the Auditor, was, in fact, done by the
Bank for many years. The statement
of the account of the Seminary Lands
with the Planters Bank is to be found
in the House Journal of 1874, page 446.
And we get some interesting informa-
tion from it.
Remember, now, that the amount of
notes with APPROVED SECURITY Zap
proved by the State), due the 1st days
of November, 1884, 1885 and 1886, re-
spectively (or, making allowance for the
one year of licensed extension, the 1st
days of November, 1885, 1886 and 1887,
respectively, was the handsome sum of
| $92, ,444.l7, each gear, with ten per cent.
| interest from date of sale. What lUds
| collected, in fact? The statement refer
led to, shows as follows:
| In November and December,
| 1884, out of $101, ,68S.5S
| due.................. .................SZl,J ,JLU 30
In November, 1885 and Janu-
ary, 1886, out of all the un-
paid first installment, and
all the second installment
due, total amount, about
si99 sf5. 50. 80. -. 49,. 81 ,493 50
In December, 1886, out of the
whole fund now due, ex-
cept such notes as may have
been renewed (and two
thirds of them were not en-
titled to renew amount due
ed,.................. ............... 9O,723 90
In December, 1887, with full
amount now certainly due,
and no possibility of renew
ais any longer, amount due,
about 1904, 1852; collect
ed................... ......... 49,. Nothing.
In October, 1899, amolnt due
about 1881 ,S7l.S7 collect
ed. ......... :. ........... 1922 79
And these were the last collections by
the Bank, or by the Auditor through
the Bank. This is very slow and negli
gent work, considering the class of secur-
tiles And it must be observed that
this negligent collection dntectates the f.
nancial troubles. On the Sth January,
1899, lust after these last collections
(four months to day., we get another
glimpse into this obscure history. Gov.
|
says: "The notes (that is, the Seminary
Fund notes) are generally well secured
butmany of them are under protest. \
UNLESS THE UNIVERSITY Is
SPEEDILY ESTABLISHED, OR THE Law
PROVIDING FOR THE COLLECTION OF THE
FUND CHANGED, A LARGE PORTION OF
IT MAY BE LOST. Many of the drawer:
of the notes are dead, and others have
(; removed out of the State. "-Senat,
Journal, page s. Now remember: tn,
4 State was chargable as trustee with tn.
7 collection OF this valuable fund; she haC
5 committed that duty to the Auditor anC
the Planters Bank, the latter an insti
$ tuition practically her own; the last o
i the notes is now fourteen months over
q due, even allowing for all extensions
!, and the first of them three years over
5 due; her governor, in his official mes
) sage by which the Constitution required
that he should give the Legislature in
s formation of the state of the govern
/ ment, and recommend to their consider
t alton such measures as he shall deen
y expedient, pointedly notifies them tina
q the precious trust is in peril, ant
!, invokes their action to save it. Wha
It is done? What action taken? Why this
d instead of arranging for the speedy col
# lection of the fund, the Legislature, o.
the 18th February, actually transferre
IS its stock in the Bank to the Mississippi
a r. R. Co., and surrendered its director
l. in the Bank; in short, cut itself eve
n further loose from this property. Bu
l. this is by no means all.
y In 1910, Gov. MCNUTr (who SCENE
d to understand the Importance of th
IL of$ he II olott
y In his message of that year, he says:
"a again invoke your speedy action on tf
II Seminary Fund. 1t now amounts, prir
ie cipal and interest, to about $500 100000
5, The law providing for the custody {
D. this fund is VERY DEFECTIVE, and
IS large portion of it WILL CERTAINLY B
LOST UNLESS IT is TAKEN FROM TIL
oI Poss EssIoN OF THOSE WHO CONTROL IT
A Perfectly plain it is, that the Govern,
Is regarded the peril to the fund, not 8
n the result of any vice in the securiti,
IL themselves, but as that of its manag
as ment. Well, he warns the Legislature
1n in the manner appointed by the Cons,
e. tuition; and what does it do towards
at remedy? Nothing; just nothingl
" Again: In 1871, Auditor Saunders,
ne his report (see p. 425, House Journal
1841), specifies to the Legislature tt
at amount of the fund outstanding unco
Ut lected, at $168,5lS. And commits
ng of the House (see House Journal. pas
ng 420), thus reports in connection wit
that statement: "Your committee b
Mt not been informed OF ANY GREAT E
he ERFIoN HAVING BEEN MADE TO co
te. iLEcr THIS LARGE AMOUNT OF DEE
ly and from the best information they ha
ut on the subject, great proportion of it
cd in very bad condition on account of 4
of insolvency of the debtors. They Al
Us CONSTRAINED TO BELIEVE THAT IF Dl